hanson001

Wall Street Breakfast: Must-Know News

"Freddie Mac (FRE) confirmed Charles E. Haldeman Jr. will be the company's new chief executive, becoming Freddie's fourth CEO in less than a year. "

Four in less than a year. Who would think it? And who would want to be the CEO of a company ran by the government that is wanting you to go out and create bad loans that will eventually get you fired?

You would have to be a complete numbskull to take that job. The person willing to take that job proves he/she is not up to the task of producing profits for the stakeholders. What a bunch of idiots. Get the cash while you can or before you get fired I guess.

Wall Street Breakfast: Must-Know News

"Parallel Petroleum Corp. (PLLL) will turn over half its interest in a natural gas field rather than pay to drill wells, underscoring how falling oil and gas prices have left smaller energy producers desperate for cash."

Chesapeake was paying some landowners in Louisiana (the Haynesville Shale) last year up to 22K per acre bonus and agreeing to 1/4 interest. This was when NG was trading around $14 per million Btu. Now it's under $5 and the little players might be good shorts. Heck, Parallel just gave their field away. That's some pain.

I hear the shale in Dallas can supply 6% of our nation's NG demand. The shale in Louisiana is four times that size and they are choking down the wells down here. And there are many other shales such as the Mercellus that could hold more gas than the Hanynesville Shale.

Chesapeake has a great deal of production hedged as does XTO. But I think unless a great deal of producers go out of business, NG prices will stay under $5 for longer than people think. Chesapeake's CEO stated months ago that the smaller and underfunded should start having real problems in the shales at the $5.50 price level.

Wall Street Breakfast: Must-Know News

"Legislators had sought out Citi's support, hoping banking industry support would help the bill be approved more quickly, and Citi was duly applauded for 'being open-minded' and 'playing a major leadership role.' Senate Democrats hope to include the bill in Obama's stimulus plan."

See, if you agree with the socialist in Washington, you are "open-minded" and playing a "major leadership role." Once you take the government money, they are going to run you. The tide is going out and now we see what dollar whores the CEO's are.

Wall Street Breakfast: Must-Know News

axelrod6008: If I could have my way, the people that helped create this problem would have zero assets. That would mean that a great deal of the world's population would have no roof over their head. The plan that's in front of Congress is the government attempting to preserve what is left.

The government will not allow a run on the banks? Yeah, like the Great Depression, when we had bank holidays, after the damage was done. And the French government couldn't stop the bastille coming down, eventhough they said don't do that. One could argue the run has already begun with Bearns Stearns and Lehman. The government always acts after the infection has taken hold.

Wall Street Breakfast: Must-Know News

axelrod608: "In the P&B (Paulson and Bernake) plan I have yet to hear where the proceeds would go. Wouldn't paying the creditors be a good thing, especially since P&B have repeatedly made the case that their plan is to fix the credit problem ? "

The tax payers, like always, are the creditors. The proceeds, depending on how the reverse auction turns out, could be a good investment. Don't get me wrong. I am for the free-hand no matter what. My belief is that great stress is the only way to change behavior.

axelrod608: "It would be a piece of cake to add a dozen or more judges to the bankruptcy system to handle the additional demand. The cost would be recaptured in the asset auctions. More responsible companies with stronger balance sheets and more conservative executives would buy up the assets of the insolvent companies and put them back to work. And they wouldn't play Lotto with their shareholders' funds."

This problem is global and I believe we are close to a run on the banks. The behavior in the money market accounts and the t-bill yields should give you a clue. People, smartly, have no confidence in the system. Too many lies, too much greed, too many people with great dept levels crying about the government having the same problem. Wow! We have a very sick culture.

Our sin nature makes me collect ammo.